Press Information Bureau

Government of India

Ministry of Communications & Information Technology

19-December, 2012 16:08 IST

To promote telecom equipment manufacturing within the country and to check the imbalance, following steps have been taken:

i) The National Telecom Policy-2012 (NTP-2012) inter-alia, has following objectives on promoting Telecom Equipment Manufacturing:

• Promote the ecosystem for design, Research and Development, IPR creation, testing, standardization and manufacturing i.e. complete value chain for domestic production of telecommunication equipment to meet Indian telecom sector demand to the extent of 60% and 80% with a minimum value addition of 45% and 65% by the year 2017 and 2020 respectively.

• Provide preference to domestically manufactured telecommunication products, in procurement of those telecommunication products which have security implications for the country and in Government procurement for its own use, consistent with our World Trade Organization (WTO) commitments.

ii) With a view to increasing share of domestically manufactured electronic products which includes telecom equipment also, the Government vide Notification No. 8(78)/2010-IPHW dated 10th February 2012 has laid down the policy for providing preference to domestically manufactured electronic products in procurement. Department of Telecommunications has notified telecom products to be procured by all the Ministries or Departments (except the Ministry of Defence) of Government and the agencies under their administrative control and for all Government funded telecom projects (e.g. NFS and projects funded by USOF like NOFN etc.) vide notification No. 18-07/2012-IP dated 5th October 2012 as amended vide Notification dated 27th November 2012. The notification proposes 50% to 100% preferential market access for domestically manufactured telecom equipment with minimum value addition of 25% to 65%.

This information was given by Shri Milind Deora, Minister of State for C&IT in written reply to a question in Lok Sabha today.

 

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MV/RK

 

Preference for domestically manufactured telecom equipment: procurement access granted when minimum value addition conditions are met. The policy mandates promotion of the full telecom manufacturing ecosystem and sets progressive domestic supply share and minimum value addition targets. Procurement policy grants preference to domestically manufactured telecom products for security sensitive items and government use, implemented by notifications that prescribe graded preferential market access for domestically produced equipment subject to specified minimum value addition requirements.